Alaska
CANNABIS DISPENSARY REGULATIONS FOR ALASKA
The Alcohol & Marijuana Control Office (AMCO) is responsible for overseeing and licensing marijuana businesses in Alaska. In Alaska, all marijuana business licenses are premises-based, meaning the first step in applying for a license is securing a suitable location. Proposed marijuana retail store locations must comply with all local ordinances and zoning codes, as well as the buffer zones set forth in Alaska’s marijuana regulations.
The application fee for a new marijuana establishment is $1,000, and there is a fingerprint fee of $48.25 for each person associated with the application. The licensing fee for a retail marijuana store is $5,000.
Payment processing remains a complex aspect of running a cannabis business in Alaska due to federal illegality, which creates obstacles for accessing traditional banking and payment processing services. Consequently, many cannabis businesses in Alaska rely on cash transactions, which can be risky and inconvenient. Companies like PayRio aim to alleviate these challenges by providing compliance and security solutions to help cannabis businesses thrive. Additionally, AMCO continues to work on improving regulatory frameworks to support the growth and safety of the cannabis industry in Alaska.
Contact PayRio today to learn more about our payment processing solutions for Alaska cannabusinesses.
CANNABIS LEGALIZATION HISTORY IN ALASKA
On May 16, 1975, Alaska became the second state in the U.S. to decriminalize cannabis. The Alaska Supreme Court became the first – and only – U.S. state or federal court to announce a constitutional right to privacy that protects some level of marijuana use and possession.
The state first legalized medical marijuana in 1998, allowing patients with qualifying medical conditions to access and use cannabis for medical purposes.
In November 2014, voters approved a ballot initiative to legalize recreational marijuana, making Alaska one of the first states in the United States to do so. Under the law, adults aged 21 and over can possess up to one ounce of marijuana or its equivalents, and can grow up to six plants for personal use.
Retail sales of recreational marijuana began in October 2016, with the state generating significant tax revenue from cannabis sales. Alaska has also implemented social equity provisions in its cannabis regulations, such as prioritizing licenses for those from communities disproportionately affected by the war on drugs. Overall, Alaska has embraced cannabis legalization and regulation, allowing for both medical and recreational use while also promoting social equity in the industry.